Circle, with USDC backed by US dollar assets, achieved nearly a 5% return rate, generating 1.7 billion USD in revenue over 24 years.
However, after deducting various costs, the profit is only about 0.5%.
Among these, distribution costs surprisingly accounted for 60% of the revenue,
which went to subsidies for Coinbase, Binance, and others.
Then, employee and administrative costs consumed 30% of the revenue.
It seems working at Circle should be quite enjoyable.
In 24 years, over 800 employees took home 260 million USD in salaries.
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In contrast, Tether clearly has much higher employee efficiency.
Tether has an employee scale of around 200 people.
In 24 years, it generated 13 billion USD in revenue (mainly, besides earning interest spreads, Tether is also involved in other businesses, such as investing in BTC/gold, mining, etc.).
If investment returns are included, the employee efficiency is actually 30 times that of Circle 😂.
